We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site.

Bitcoin, Ripple, Ether, Litecoin - News and Talking Points

To see how retail traders are currently positioned in cryptocurrencies and what it means for the market looking forward, download the IG Client Sentimentpage.

Bitcoin Holds on to Recent Gains

The largest crypto-token by market capitalization ($157 billion) is holding onto its recent gains despite Wednesday’s sell-off but is struggling to make further headway and a period of consolidation looks likely. Bitcoin is supported by the 200-day moving average, currently around $9,030 and the uptrend line from the February 6 low that kicks in around $8,900. A break and close below these levels could see further falls back down to around $7,300. On the upside the 61.8% retracement level at $9,397 has been broken twice and should not offer too much resistance and is followed by a gap created by the March 7 candle between $10,100 and $10,550.

Ripple’s Mid-Week Slump Re-Ignites Fears

After outperforming the other crypto-market heavyweights over the last couple of weeks, XRP fell by 20% in 24-hours mid-week on fears that the token may come closely scrutiny over whether it could be classified as a security. Although fears were quickly quelled, the speed of the drop reminded traders of the overbought nature of XRP – see the IG Client Sentiment Indicator –and the lack of bids/liquidity when troubles hit. The chart shows XRP making higher lows over the past two days from the $0.75 swing low, boosting confidence but the potential 20-day and 50-day moving average crossover could stall any upside move. On the upside, resistance is seen at $0.96 ahead of $1.00 while support is pegged at $0.75 followed by $0.71 and $0.61.

Ethereum’s Potentially Bullish Set-Up

Ethereum is setting up a potentially bullish ‘Tea-Cup’ chart pattern that may suggest the market trading back up to the $1,000 level. The handle of the cup has been formed this week and resistance at $764 and $810 may be reached shortly. On the downside, 200-day moving average at $588 followed by two swing lows at $566 and $497. Ethereum was also mentioned by former CFTC regulator Gary Genser when he discussed the possibility of Ripple being classified as a security. Web-based wallet provider MyEtherWallet was in the news this week after it was hit with a DNS spoofing attack this week which contributed to the mid-week fall.

Litecoin’s Potential to Move Higher

Another token with the potential to rally past this week’s high and back towards levels last seen one month ago. Currently trading around $150, the upside targets include $166 followed by $175 before $200 comes into the equation. However before LTC pushes for new highs, the uptrend on the four hour chart needs to fully re-established otherwise a pull-back to $137 may occur.

What’s your view of the cryptocurrency market – oversold or overbought? You can leave your comments in the section below or you can contact the author by email at nicholas.cawley@ig.com or via Twitter @nickcawley1.

--- Written by Nick Cawley, Analyst.

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

Leveraged trading in foreign currency or off-exchange products on margin carries significant risk and may not be suitable for all investors. We advise you to carefully consider whether trading is appropriate for you based on your personal circumstances. Forex trading involves risk. Losses can exceed deposits. We recommend that you seek independent advice and ensure you fully understand the risks involved before trading.

FX Publications Inc (dba DailyFX) is registered with the Commodities Futures Trading Commission as a Guaranteed Introducing Broker and is a member of the National Futures Association (ID# 0517400). Registered Address: 32 Old Slip, Suite 803; New York, NY 10005. FX Publications Inc is a subsidiary of IG US Holdings, Inc (a company registered in Delaware under number 4456365)